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The National Association of Mutual Insurance Companies sent a letter to the North Carolina House Insurance Comm-ittee opposing Senate Bill 319, which would amend provisions of the state’s self-insurance guaranty association. SB 319 has already passed the state Senate.

“NAMIC is concerned the changes will effectively create a situation where smaller self-insured entities could end up being bailed out by the regular insurer’s guaranty fund,” David Reddick, NAMIC’s state affairs manager said. “We are asking the legislators to slow down the bill’s progress, and instead create a task force to study this issue in more detail before implementing any new changes in the present law.”

Reddick also noted that the state’s Court of Appeals decision recently upheld a lower court decision in Bowles v. BCJ Trucking Services Inc., in which the North Carolina Insurance Guaranty Association was held liable for the plaintiff’s covered claims when the obligations of his self-insured plan subsequently were assumed by Reliance Insurance, which then became insolvent.